According to the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s. The Journal of Housing Research cites that with homeowership, more wealth is accumulated because owning a home is a “forced savings plan”. Generally speaking, people who plan to stay in a property long term can benefit from buying. The National Association of Realtors® reports that home owners enjoy stable housing costs with a fixed-rate mortgage payment for 15 to 30 years, while renters typically see rent increases of 3% yearly.
Twenty three states in the US are showing 30-year record levels of affordability of homes based upon price-to-income ratios. All 50 states are at 30-year record affordability levels based upon mortgage payment-t0-income ratios.
Why own a home?
- Financial advantages with deduction of mortgage interest and property taxes from federal income tax returns
- Civic pride
- Personal happiness and the ability to redecorate, renovate and modify your home as you wish
Homeownship is an investment in our future for ourselves, our communities and our nation. 75 million US homeowners have assumed this responsibility and continue the American Dream. 67% of American households are owner-occupied. America is a nation of home owners!
The Meredith Company (one of the biggest magazine publishers in the US) conducted a recent survey and found that homeownership remains important:
- 86% of polled homeowners still feel owning a home was a good investment
- 85% said owning a home is one of their proudest accomplishments
- 71% have spent money on their home in the past 12 months